Equity incentive plan

12 Months Ended

Oct. 31, 2011

Equity Incentive Plan

Equity incentive plan

Note 8- Equity incentive plan:

On September 10, 1998, the Board of Trustees approved FREIT's Equity Incentive Plan (the "Plan") which was ratified by FREIT's shareholders on April 7, 1999, whereby up to 920,000 of FREIT's shares of beneficial interest (adjusted for stock splits) may be granted to key personnel in the form of stock options, restricted share awards and other share-based awards. In connection therewith, the Board of Trustees approved an increase of 920,000 shares in FREIT's number of authorized shares of beneficial interest. Key personnel eligible for these awards include trustees, executive officers and other persons or entities including, without limitation, employees, consultants and employees of consultants, who are in a position to make significant contributions to the success of FREIT. Under the Plan, the exercise price of all options will be the fair market value of the shares on the date of grant. The consideration to be paid for restricted share and other share-based awards shall be determined by the Board of Trustees, with the amount not to exceed the fair market value of the shares on the date of grant. The maximum term of any award granted may not exceed ten years. The Board of Trustees will determine the actual terms of each award.

Upon ratification of the Plan on April 7, 1999, FREIT issued 754,000 stock options (adjusted for stock splits), which it had previously granted to key personnel on September 10, 1998. The fair value of the options on the date of grant was $7.50 per share.

On April 4, 2007, FREIT shareholders approved amendments to FREIT’s Equity Incentive Plan as follows: (a) reserving an additional 300,000 shares for issuance under the Plan; and (b) extending the term of the Plan until September 10, 2018. As of October 31, 2011, 466,000 shares are available for issuance under the Plan.

The following table summarizes stock option activities: 

	Years Ended October 31,
	2011				2010				2009
	No. of Options Outstanding		Average Exercise Price		No. of Options Outstanding		Average Exercise Price		No. of Options Outstanding		Average Exercise Price
Balance beginning of period		0	$	—		0	$	—		0	$	—
Options exercised		—		—		—		—		—		—
Options cancelled		—				—				—
Balance at end of period		0	$	—		0	$	—		0	$	—

There were no options outstanding at October 31, 2011 and October 31, 2010, since all previously granted options expired in September 2008 or were exercised prior to that date. The total intrinsic value of options exercised during Fiscal 2008 was $3,650,000.